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Diving overview:
- Primo Water and an affiliate of beverage company BlueTriton Brands have merged to create a diversified water conglomerate selling small portable bottles and larger containers. BlueTriton's brands include Polish Spring, Deer Park, Ozarka, Ice Mountain and Pure Life.
- Full inventory transactions will create a portfolio that serves millions of consumers across a variety of product formats, channels, price points and usage situations. The new company expects total net income of $6.5 billion.
- Blue Triton was founded in 2021 after Nestlé sold its North American bottled water business to private equity firms One Rock Capital Partners and Metropoulos & Co. for $4.3 billion.
Dive Insights:
As consumers turn away from sugary beverages in favor of healthier beverages, few companies stand to benefit more than the newly merged Primo and BlueTriton entities. Retail sales of bottled water increased from $17 billion in 2018 to $25 billion a year ago, the companies said in a release.
They said the new entity “will bring together complementary strengths to create a leader in pure regenerative healthy hydration in North America.”
Together, the new company will own nearly two dozen bottled water brands, including Pure Life and Polish Springs, each valued at more than $1 billion. You can deliver larger bottles to places like homes or offices, give consumers the opportunity to fill or exchange containers at a variety of locations, and deliver smaller bottles to places like grocery stores or convenience stores.
The merger will give the company a diversified presence across multiple channels, with 55% of sales coming from retail, 25% from commercial and 20% from residential. Primo and Blue Triton It presents a variety of growth opportunities, including expansion into new channels and high-potential geographies, driving innovation in the functional, flavor and premium segments, and expanding our fast-growing filtration business.
“The combined company will better serve our customers anytime, anywhere through the strength of our diverse portfolio of iconic brands, national presence, and combined delivery platforms,” Robert Rietbroek, CEO of Primo Water, said in a statement. “It will be possible,” he said. “We are excited to combine Primo Water and BlueTriton to create North America’s leading pure play healthy hydration company.”
The new company will be led by current Chairman Dean Metropoulos. Blue TritonWho will take on the role? non-executive chairman. Primo's CEO Robbert Rietbroek will assume the top position, while current CFO David Hass will assume the same role. The company also said that. Blue Triton Rob Austin will continue to serve as COO.
The transaction is expected to be completed in the first half of 2025.
